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EFORA ENERGY LIMITED - Updated Trading Statement for the Six Month Period Ended 31 August 2017

Release Date: 30/11/2017 08:55
Code(s): EEL     PDF:  
Wrap Text
Updated Trading Statement for the Six Month Period Ended 31 August 2017

EFORA ENERGY LIMITED
(Formerly SacOil Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
Share Code: EEL
ISIN: ZAE000248258
(“Efora” or “the Company”)

UPDATED TRADING STATEMENT FOR THE SIX MONTH PERIOD ENDED 31
AUGUST 2017

Shareholders are referred to the announcement released on the
Johannesburg Stock Exchange News Service (“SENS”) on 17
November 2017 in which the Company advised that earnings per
share and headline earnings per share for the six months ended
31 August 2017 are expected to be at least 20% higher relative
to the prior comparative period (“the Announcement”). The
Announcement indicated that the Company would provide a more
detailed trading statement which would highlight reasons for
this deviation as set out below.

AfricOil
The transformational acquisition of a controlling interest in
AfricOil was completed on 31 May 2017 and 3 months results
were included in the current period. The total volume sold
during the period was 100 million litres (33.3 million per
month) and was impacted due to changes in the competitive
market. The company also suspended its Zimbabwean operations
for the period to refocus the business model in the country,
with operations resuming on 1 October 2017. We have also
incurred additional costs for the provision of doubtful debt
and write downs, coupled with integration related costs. The
overall loss for the period is forecast to be around R20
million.

The integration activities are well underway and further
information will be provided in the results announcement.

Lagia
Performance at Lagia to date has been impacted due to the
delay in the pilot well, but we are pleased to announce that
it was spudded on 28 November 2017. The results of this well
will be pivotal in establishing a more effective development
plan for the overall field, and will also result in increased
near-term production from Lagia. Prior to the drilling of the
well our strategy was focussed on continuing our detailed
analysis of the field, with limited thermal stimulation on
existing wells on the field. Despite reduced output and lower
than expected revenue of R1.74 million, our efforts to
improve cost control at the field delivered a significantly
reduced loss of R7.7 million (2016:R20.7 million).

Impairment of financial assets
As previously reported in the period to 31 August 2016, the
impact of ongoing litigation, as disclosed in the Directors
Report of our 28 February 2017 Annual Report, contributed to a
provision for impairment of R164 million. No significant
impairments were recorded in the current period.

Foreign exchange gain
The weakening of the Rand against the US$ during the period
resulted in foreign exchanges gain of R0.5 million (2016: Loss
of R62 million). Future developments within the currency
markets will continue to impact the Group’s operations and
assets.

As a result of the above, shareholders are advised that the
basic loss per share is expected to be between 1.06 cents and
1.66 cents, representing a decrease of between 70% and 80%
from the basic loss per share of 6.77 cents recorded for the
six months ended 31 August 2016.

The basic headline loss per share, which excludes the impact
of any re-measurements of assets or liabilities, is also
expected to be between 1.06 cents and 1.66 cents, representing
a decrease of between 75% and 84% from the basic headline loss
per share of 6.77 cents recorded for the six months ended 31
August 2016.

The net asset value per share as at 31 August 2017 is expected
to be between 19.14 cents and 21.24 cents, a decrease of
between 20% and 30% when compared to the net asset value per
share of 20.99 cents at 31 August 2016.

The results for the six months ended 31 August 2017 will be
released on SENS on Thursday, 30 November 2017.

The financial information on which this trading statement is
based has not been reviewed, audited or reported on by the
Company's external auditors. This statement is issued in
compliance with paragraph 3.4(b) of the Listings Requirements
of the JSE Limited.

JSE Sponsor
PSG Capital Proprietary Limited

30 November 2017

For further information please contact:
Efora Energy Limited
Damain Matroos
+27 (0)10 591 2260

Buchanan (Financial PR adviser)
Ben Romney / Chris Judd
+44 (0)20 7466 5000

About Efora
Efora Energy Limited is a South African based independent
African oil and gas company, listed on the JSE. The Company
has a diverse portfolio of assets spanning production in
Egypt; exploration and appraisal in the Democratic Republic of
Congo; midstream project relating to crude trading in Nigeria
and material downstream distribution operations throughout
Southern Africa. Our focus as a Group is on delivering energy
for the African continent by using Africa’s own resources to
meet the significant growth in demand expected over the next
decade.

Date: 30/11/2017 08:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

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